House Bill 1795

AN ACT TO AMEND SECTIONS 27-7-5, 27-69-13, 27-69-75, 27-71-307,
27-71-337, 27-71-11, 27-71-29, 75-76-177 AND 75-76-129, MISSISSIPPI CODE OF
1972, TO INCREASE THE STATE INCOME TAX; TO INCREASE THE EXCISE TAX ON
CIGARETTES; TO INCREASE THE EXCISE TAX ON LIGHT WINE AND BEER; TO INCREASE THE
MARKUP ON ALCOHOLIC BEVERAGES; TO INCREASE THE GAMING LICENSE GROSS REVENUE
FEE; TO PROVIDE THAT THE REVENUE DERIVED FROM THE TAX INCREASE AUTHORIZED BY
THIS ACT SHALL BE DEPOSITED INTO THE BUDGET CONTINGENCY FUND; TO PROVIDE THE
PURPOSES FOR WHICH SUCH MONIES DEPOSITED INTO THE BUDGET CONTINGENCY FUND SHALL
BE EXPENDED; AND FOR RELATED PURPOSES.

27-7-5.
(1) (a) Except as otherwise provided in this
subsection (1), there is hereby assessed and levied, to be collected and
paid as hereinafter provided, for the calendar year 1983 and fiscal years
ending during the calendar year 1983 and all taxable years thereafter, upon the
entire net income of every resident individual, corporation, association, trust
or estate, in excess of the credits provided, a tax at the following rates:

On the first Five Thousand Dollars
($5,000.00) of taxable income, or any part thereof, at the rate of three
percent (3%);

On the next Five Thousand Dollars
($5,000.00) of taxable income, or any part thereof, at the rate of four percent
(4%); and

On all taxable income in excess of Ten
Thousand Dollars ($10,000.00), at the rate of five percent (5%).

(b) For calendar year 2004, and each calendar year thereafter, there
is hereby assessed and levied, to be collected and paid as hereinafter
provided, upon the entire net income of every resident individual, association,
trust or estate, in excess of the credits provided, a tax at the following
rates:

On the first Five Thousand Dollars
($5,000.00) of taxable income, or any part thereof, at the rate of three
percent (3%);

On the next Five Thousand Dollars
($5,000.00) of taxable income, or any part thereof, at the rate of four percent
(4%);

On the next Five Thousand Dollars
($5,000.00) of taxable income, or any part thereof, at the rate of five percent
(5%); and

On all taxable income in excess of
Fifteen Thousand Dollars ($15,000.00), at the rate of six percent (6%).

(2)
An S corporation, as defined in Section 27-8-3(1)(g), shall not be
subject to the income tax imposed under this section.

(3)
A like tax is hereby imposed to be assessed, colleted and paid annually,
except as hereinafter provided, at the rate specified in this section and as
hereinafter provided, upon and with respect to the entire net income, from all
property owned or sold, and from every business, trade or occupation carried on
in this state by individuals, corporations, partnerships, trusts or estates,
not residents of the State of Mississippi.

(4)
Except as provided in subsection (5) of this section, in the case
of taxpayers having a fiscal year beginning in the calendar year 1982 and ending
after the first day of January 1983, the tax due for that taxable year shall be
determined by:

(a)
Computing for the full fiscal year the amount of tax that would be due
under the rates in effect for the calendar year 1982; and

(b)
Computing for the full fiscal year the amount of tax that would be due
under the rates in effect for the calendar year 1983; and

(c)
Applying to the tax computed under paragraph (a) the ratio which the
number of months falling within the earlier calendar year bears to the total
number of months in the fiscal year; and

(d)
Applying to the tax computed under paragraph (b) the ratio which the
number of months falling within the later calendar year bears to the total
number of months within the fiscal year; and

(e)
Adding to the tax determined under paragraph (c) the tax determined
under paragraph (d) the sum of which shall be the amount of tax due for the
fiscal year.

(5)
In the case of a resident individual, association, trust or estate
having a fiscal year beginning in the calendar year 2003 and ending after the
first day of January 2004, the tax due for that taxable year shall be
determined by:

(a) Computing for the full fiscal year the amount of tax that would
be due under the rates in effect for the calendar year 2003;

(b) Computing for the full fiscal year the amount of tax that would
be due under the rates in effect for the calendar year 2004;

(c) Applying to the tax computed under paragraph (a) the ratio which
the number of months falling within the earlier calendar year bears to the
total number of months in the fiscal year;

(d) Applying to the tax computed under paragraph (b) the ratio which
the number of months falling within the later calendar year bears to the total
number of months within the fiscal year; and

(e) Adding to the tax determined under paragraph (c) the tax
determined under paragraph (d) the sum of which shall be the amount of tax due
for the fiscal year.

(6)
The revenue derived from the additional tax rate of one percent (1%)
imposed under House Bill No. 1795, 2004 Regular Session, shall be deposited
into the Budget Contingency Fund created under Section 27-103-301. All of the remainder of the proceeds from
the taxes imposed under this section shall be deposited into the State General
Fund.

27-69-13. There is hereby imposed, levied and
assessed, to be collected and paid as hereinafter provided in this chapter, an
excise tax on each person or dealer in cigarettes, cigars, stogies, snuff,
chewing tobacco, and smoking tobacco, or substitutes therefor, upon the sale,
use, consumption, handling or distribution in the State of Mississippi, as
follows:

(a) On cigarettes, the rate of tax shall be Two
and Eight-twentieths Cents (2-8/20˘) on each cigarette sold with a maximum length of
one hundred twenty (120) millimeters; any cigarette in excess of this length
shall be taxed as if it were two (2) or more cigarettes. Provided, however, if the federal tax rate
on cigarettes in effect upon the passage of Senate Bill No. 2876, 1985 Regular
Session, is reduced, then the rate as provided herein shall be increased by the
amount of the federal tax reduction.
Such tax increase shall take effect on the first day of the month
following the effective date of such reduction in the federal tax rate.

(b) On cigars, cheroots, stogies, snuff, chewing
and smoking tobacco and all other tobacco products except cigarettes, the rate
of tax shall be fifteen percent (15%) of the manufacturer's list price.

No stamp
evidencing the tax herein levied on cigarettes shall be of a denomination of
less than One Cent (1˘), and whenever the tax computed at the rates herein
prescribed on cigarettes shall be a specified amount, plus a fractional part of
One Cent (1˘), the package shall be stamped for the next full cent; however,
the additional face value of stamps purchased to comply with taxes imposed by
this section after June 1, 1985, shall be subject to a four percent (4%) discount
or compensation to dealers for their services rather than the eight percent
(8%) discount or compensation allowed by Section 27-69-31.

Every wholesaler
shall purchase stamps as provided in this chapter, and affix the same to all
packages of cigarettes handled by him as herein provided.

The above tax is levied upon the sale, use,
gift, possession, or consumption of tobacco within the State of Mississippi,
and the impact of the tax levied by this chapter is hereby declared to be on
the vendee, user, consumer, or possessor of tobacco in this state; and when
said tax is paid by any other person, such payment shall be considered as an
advance payment and shall thereafter be added to the price of the tobacco and
recovered from the ultimate consumer or user.

27-69-75. All taxes levied by this chapter shall be
payable to the commissioner in cash, or by personal check, cashier's check,
bank exchange, post office money order or express money order, and shall be
deposited by the commissioner in the State Treasury on the same day
collected. No remittance other than
cash shall be a final discharge of liability for the tax herein assessed and
levied, unless and until it has been paid in cash to the commissioner.

Except for the
taxes collected from the rate equal to One and One-half Cents (1-1/2˘) on each cigarette sold,
all tobacco taxes collected, including tobacco license taxes, shall be
deposited into the State Treasury to the credit of the General Fund. The taxes collected from the rate equal
to One and One-half Cents (1-1/2˘)
on each cigarette sold shall be deposited into the State Treasury to the credit
of the Budget Contingency Fund created under Section 27-103-301.

Wholesalers who are entitled to purchase
stamps at a discount, as provided by Section 27-69-31, may have consigned to
them, without advance payment, such stamps, if and when such wholesaler shall
give to the commissioner a good and sufficient bond executed by some surety
company authorized to do business in this state, conditioned to secure the
payment for the stamps so consigned.
The commissioner shall require payment for such stamps not later than
thirty (30) days from the date the stamps were consigned.

27-71-307.
(1) (a) In addition to the specific tax imposed in
Section 27-71-303, there is hereby imposed, levied, assessed and shall be
collected, as hereinafter provided, an excise or privilege tax upon each person
engaged or continuing in the business of wholesaler or distributor of light
wines or beer equivalent to Forty-seven and Sixty-eight One-hundredths Cents
(47-68/100˘)
per gallon upon all light wines and beer acquired for sale or distribution in
this state. Such excise or privilege
tax is also imposed at the same rate upon each gallon of light wine or beer
manufactured by brewpubs, each of which shall accurately and reliably measure
the quantity of light wine and beer produced by using a measuring device such
as a meter or gauge glass or any other suitable method approved by the
commissioner. Such tax is hereby
imposed as an additional tax for the privilege of engaging or continuing in
business.

(b)
The excise tax imposed in this section shall be paid to the State Tax
Commission monthly on or before the fifteenth day of the month following the
month in which the beer or light wine was manufactured or received in this
state. Monthly report forms shall be
furnished by the commissioner to the wholesalers, distributors and brewpubs.

(c)
Provided that persons operating a railroad dining car, club car or other
car in interstate commerce upon which light wines or beer may be sold and who
are licensed under the provisions of Section 67-3-27 and any other law relating
to the sale of such beverages shall keep such records of the sales of such
light wines and beer in this state as the commissioner shall prescribe and
shall submit monthly reports of such sales to the commissioner within fifteen
(15) days after the end of each month on a form prescribed therefor by the
commissioner, and shall pay the tax due under the provisions of this section at
the time such reports are filed.

No official crowns, lids, labels or stamps
with the word "MISSISSIPPI" or "MS" imprinted thereon or
any other evidence of tax payment is required by this section, or may be
required under rule or regulation promulgated by the commissioner, to be
affixed on or to any part of a beer, light wine or malt cooler bottle, can or
other light wine or malt cooler container.
For purposes of this section, malt cooler products shall be defined as a
flavored malt beverage made from a base of malt beverage and flavored with
fruit juices, aromatics and essences of other flavoring in quantities and
proportions such that the resulting product possesses a character and flavor
distinctive from the base malt beverage and distinguishable from other malt
beverages.

(2)
A licensed wholesaler or distributor of beer or light wine may not
import beer or light wine from any source other than a brewer or importer
authorized by the commissioner to sell such beer or light wine in
Mississippi. Any person who violates
the provisions of this subsection, upon conviction thereof, shall be punished
by a fine of not more than One Thousand Dollars ($1,000.00) or by imprisonment
in the county jail for not more than six (6) months, or by both such fine and
imprisonment, in the discretion of the court and shall be subject to license
forfeiture following an appropriate hearing before the State Tax Commission.

(3)
The wholesaler or distributor shall be allowed credit for tax paid on
beer or light wine which is no longer marketable and which is destroyed by same
when such destruction is witnessed by an agent of the commissioner and when the
amount of the excise tax exceeds One Hundred Dollars ($100.00). No other loss will be allowed.

A brewpub shall be allowed credit for light
wine or beer which has passed through the meter, gauge glass or other approved
measuring device and which has been soured or damaged. The brewpub shall record the removal of sour
or damaged light wine or beer and may take credit after the destruction is
witnessed by an agent of the commissioner and when the amount of excise tax exceeds
Twenty-five Dollars ($25.00). No other
loss shall be allowed.

(4)
All manufacturers, brewers and importers of beer or light wine shall
file monthly reports as prescribed by the commissioner listing sales to each
wholesaler or distributor by date, invoice number, quantity and container size,
and any other information deemed necessary.

(5)
All administrative provisions of the Mississippi Sales Tax Law,
including those which fix damages, penalties and interest for nonpayment of
taxes and for noncompliance with the provisions of such chapter, and all other
requirements and duties imposed upon taxpayers, shall apply to all persons
liable for taxes under the provisions of this chapter, and the commissioner
shall exercise all the power and authority and perform all the duties with
respect to taxpayers under this chapter as are provided in the sales tax law
except where there is conflict, then the provisions of this chapter shall
control.

27-71-337.
All taxes levied by this article and required to be paid to the
commissioner shall be payable to the commissioner in cash or by personal check,
cashier's check, bank exchange, post-office money order or express money order
and shall be deposited by the commissioner into the State Treasury on the same
day collected, provided that no remittances other than cash shall be a final
discharge of liability for the tax herein imposed and levied unless and until
it has been paid in cash to the commissioner.

The
revenue collected from Five Cents (5˘) per gallon upon all light wines and beer shall be
deposited into the State Treasury to the credit of the Budget Contingency Fund
created under Section 27-103-301. All
other revenue collected under this article shall be deposited into the State
General Fund.

27-71-11. The commission shall from time to time by
resolution request the State Bond Commission to provide sufficient funds
required to maintain an adequate alcoholic beverage inventory. Said funds shall be provided under the
provisions of Chapter 557, Laws of 1966.

The commission
shall add to the cost of all alcoholic beverages a markup of thirty and one-half
percent (30-1/2%), inclusive of the three percent (3%) markup imposed by
Section 27-71-7(2).

The commission shall sell alcoholic
beverages at uniform prices throughout the state.

27-71-29. All taxes levied by this article shall be
paid to the State Tax Commission in cash or by personal check, cashier's check,
bank exchange, post-office money order or express money order and shall be
deposited by the commission in the State Treasury on the same day collected,
but no remittances other than cash shall be a final discharge of liability for
the tax herein imposed and levied unless and until it has been paid in cash to
the State Tax Commission.

All taxes levied under Section 27-71-7(1)
and received by the commission under this article shall be paid into the
General Fund, and the three percent (3%) levied under Section 27-71-7(2) and
received by the commission under this article shall be paid into the special
fund in the State Treasury designated as the "Alcoholism Treatment and
Rehabilitation Fund" as required by law.
Any funds derived from the sale of alcoholic beverages in excess of
inventory requirements, less the funds received from the additional three
percent (3%) markup on the cost of all alcoholic beverages provided for under
House Bill No. 1795, 2004 Regular Session, shall be paid not less often
than annually into the General Fund. The
funds received from the additional three percent (3%) markup on the cost of all
alcoholic beverages provided for under House Bill No. 1795, 2004 Regular
Session, shall be deposited monthly into the State Treasury to the credit of
the Budget Contingency Fund created under Section 27-103-301.

75-76-177. (1)
From and after August 1, 1990, through June 30, 2004, there is
hereby imposed and levied on each gaming licensee a license fee based upon all
the gross revenue of the licensee as follows:

(a) Four percent (4%) of all the gross revenue
of the licensee which does not exceed Fifty Thousand Dollars ($50,000.00) per
calendar month;

(b) Six percent (6%) of all the gross revenue of
the licensee which exceeds Fifty Thousand Dollars ($50,000.00) per calendar month
and does not exceed One Hundred Thirty-four Thousand Dollars ($134,000.00) per
calendar month; and

(c) Eight percent (8%) of all the gross revenue
of the licensee which exceeds One Hundred Thirty-four Thousand Dollars
($134,000.00) per calendar month.

(2)
From and after July 1, 2004, there is hereby imposed and levied on
each gaming licensee a license fee based upon all the gross revenue of the
licensee as follows:

(a) Five percent (5%) of all the gross revenue of the licensee which
does not exceed Fifty Thousand Dollars ($50,000.00) per calendar month;

(b) Seven percent (7%) of all the gross revenue of the licensee which
exceeds Fifty Thousand Dollars ($50,000.00) per calendar month and does not
exceed One Hundred Thirty-four Thousand Dollars ($134,000.00) per calendar
month; and

(c) Nine percent (9%) of all the gross revenue
of the licensee which exceeds One Hundred Thirty-four Thousand Dollars
($134,000.00) per calendar month.

(3) All revenue received from any game or gaming
device which is leased for operation on the premises of the licensee-owner to a
person other than the owner thereof or which is located in an area or space on
such premises which is leased by the licensee-owner to any such person, must be
attributed to the owner for the purposes of this section and be counted as part
of the gross revenue of the owner. The
lessee is liable to the owner for his proportionate share of such license fees.

(4) If the amount of license fees required to be
reported and paid pursuant to this section is later determined to be greater or
less than the amount actually reported and paid by the licensee, the Chairman
of the State Tax Commission shall:

(a) Assess and collect the additional license
fees determined to be due, with interest thereon until paid; or

(b) Refund any overpayment, with interest
thereon, to the licensee.

Interest must be
computed, until paid, at the rate of one percent (1%) per month from the first
day of the first month following either the due date of the additional license
fees or the date of overpayment.

(5)
Failure to pay the fees provided for in this section when they are due
for continuation of a license shall be deemed a surrender of the license.

75-76-129.
On or before the last day of each month all taxes, fees, interest,
penalties, damages, fines or other monies collected by the State Tax Commission
during that month under the provisions of this chapter, with the exception of
(a) the local government fees imposed under Section 75-76-195, * * * (b) an amount
equal to Three Million Dollars ($3,000,000.00) of the revenue collected
pursuant to the fee imposed under Section 75-76-177(1)(c), or an amount equal
to twenty-five percent (25%) of the revenue collected pursuant to the fee
imposed under Section 75-76-177(1)(c), whichever is the greater amount, and
(c) the revenue collected as a result of the fee increase in Section 75-76-177(2),
shall be paid by the State Tax Commission to the State Treasurer to be
deposited in the State General Fund.
The local government fees shall be distributed by the State Tax
Commission pursuant to Section 75-76-197.
An amount equal to Three Million Dollars ($3,000,000.00) of the revenue
collected during that month pursuant to the fee imposed under Section 75-76-177(1)(c)
shall be deposited by the State Tax Commission into the bond sinking fund
created in Section 65-39-3. The revenue
collected during that month pursuant to the fee imposed under Section 75-76-177(1)(c)
that is in excess of Three Million Dollars ($3,000,000.00), but is less than
twenty-five percent (25%) of the amount of revenue collected during that month,
shall be deposited into the State Highway Fund to be used exclusively for the
reconstruction and maintenance of highways of the State of Mississippi. The revenue collected as a result of the
fee increase in Section 75-76-177(2), as provided in House Bill No. 1795, 2004
Regular Session, shall be deposited monthly into the State Treasury to the
credit of the Budget Contingency Fund created under Section 27-103-301.

[From and after July 1, 2022, this
section shall read as follows:]

75-76-129.
On or before the last day of each month, all taxes, fees, interest,
penalties, damages, fines or other monies collected by the State Tax Commission
during that month under the provisions of this chapter, with the exception of (a)
the local government fees imposed under Section 75-76-195, and (b) therevenue
collected as a result of the fee increase in Section 75-76-177(2), as provided
in House Bill No. 1795, 2004 Regular Session, shall be paid by the State
Tax Commission to the State Treasurer to be deposited in the State General
Fund. The local government fees shall
be distributed by the State Tax Commission pursuant to Section 75-76-197. The revenue collected as a result of the
fee increase in Section 75-76-177(2), as provided in House Bill No. 1795, 2004
Regular Session, shall be deposited monthly into the State Treasury to the
credit of the Budget Contingency Fund created under Section 27-103-301.

SECTION 10. Monies deposited into Budget Contingency
Fund under Sections 27-7-5, 27-69-75, 27-71-337, 27-71-29 and 75-76-129, as
amended by House Bill No. 1795, 2004 Regular Session, shall be expended, upon
appropriation by the Legislature as follows:

(a) Department of
Mental Health...... $ 25,592,266.00

(i) Operation of
crisis centers. $ 17,100,571.00

(ii) Matching funds for Medicaid

Home- and Community-Based

Services................... $ 4,000,000.00

(iii) Matching funds for services to

Medicaid patients in nursing

homes and ICF/MRs of the

department................ $ 4,491,695.00

(b) State Board
of Education......... $144,442,209.00

(i) Teacher pay
raise........... $ 98,000,000.00

(ii) Additional Mississippi Adequate

Education
critical needs... $ 23,504,970.00

(iii) Restore teacher supply

funds..................... $ 15,900,000.00

(iv) Teacher salary supplements for

national
board certification$ 1,359,881.00

(v) Severely disabled educable

children's
program.......... $ 701,459.00

(vi) Critical needs teachers shortage

scholarships............... $ 901,493.00

(vii) School
attendance officers$ 668,618.00

(viii) Vocational
educational

needs..................... $ 1,087,404.00

(ix) Mississippi Schools for the

the Blind
and Deaf....... $ 2,318,384.00

(c) Department of
Human Services, for

child care assistance and
community

family resource centers.......... $
10,300,000.00

(d)
Department of Rehabilitation

Services......................... $ 1,405,779.00

(i) Office of Vocational Rehabilitation

for the Blind as follows:

1. Salaries, wages and

fringe
benefits......... $ 543,350.00

2. Travel and
subsistence.. $ 12,399.00

3. Contractual
services.... $ 23,431.00

4. Equipment............... $ 22,243.00

5. Subsidies,
loans and

grants.................. $ 304,356.00

(ii) Office of Special Disability

Programs, for subsidies, loans

and grants................. $ 500,000.00

SECTION
11. This act shall take effect and
be in force from and after July 1, 2004, except for Sections 1 and 2, which
shall take effect and be in force from and after January 1, 2004.